By
Temitope Olatunji
April 18th, 2024
While the race for a functional spot ETF product continues, there are tens of both futures-based applications as well as those of the former that are awaiting SEC approval.
The VanEck Bitcoin Strategy Exchange Traded Fund (ETF) is set to begin trading on Tuesday, the 16th of November, following weeks of delay after the application was approved for listing by the United States Securities and Exchange Commission (SEC). The notice of trading commencement was filed by the Chicago-based CBOE exchange, on whom VanEck’s product is billed to start trading.
According to the CBOE filing, the new ETF product will trade under the ticker symbol ‘XBTF’ with a new-issue auction to open trading around 9:30 a.m. ET followed by dissemination of index data. The launch update was preceded by the rejection of VanEck’s spot Bitcoin ETF last week, after months of postponement by the SEC as the regulator continues to express doubt on the ability of ETF providers to prevent price manipulation and guarantee adequate investor protections.
With a number of Bitcoin Futures ETFs now trading on American soil, starting with ProShares’ back on October 19, investors and ETF issuers were becoming confident the SEC will be favorable to a Bitcoin spot ETF. The rejection of the VanEck spot ETF has sent new shivers to the industry, however, many are not losing hope on the potential of the SEC to eventually approve a spot ETF someday.
VanEck Bitcoin Futures: Benefitting from Investor’s Interest
America is one of the biggest hotspots for cryptocurrency investments and trading. From hosting some of the biggest digital currency exchanges in the world including Coinbase Global Inc (NASDAQ: COIN), and Kraken, to harboring the biggest institutional investors such as MicroStrategy Incorporated (NASDAQ: MSTR), the North American giant plays a key role in shaping the cryptocurrency industry.
While many acquire Bitcoin and digital currencies from the stock market, a number of retail and institutional investors are more open to traditional investment options like an ETF product. This innate interest was showcased in the launch of the ProShares Bitcoin Futures ETF as the product amassed more than $1 billion in about 48 hours following its launch, a record for any ETF ever floated in the United States.
The VanEck Bitcoin Futures ETF is also on track to benefit from this surging interest in Bitcoin Futures related Exchange Traded Funds, as most see the firm’s consistency over the year, which may add to its expertise in managing the funds and returning profit to its investors.
While the race for a functional spot ETF product continues, there are tens of both futures-based applications as well as those of the former that are awaiting SEC approval. All in all, American investors are billed to see more avenues to gain exposure to Bitcoin through ETF products in the coming months. The growing surge in Bitcoin-related products has fueled massive growth in the price of Bitcoin which attained an All-Time High (ATH) above $68,000 earlier this month.